Exam 1: Personal Finance Basics and the Time Value of Money

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John Gleason is interested in purchasing a 46" rear projection TV for his living room.John knows that right now the TV will cost approximately $1500.John is not sure he can afford this TV right now but is worried that if he waits,the cost of the TV will rise to $1800.Which type of risk is John worried about?

(Multiple Choice)

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Question 61

.Brad Johnson has a goal of "saving $50 a month for vacation." Brad's goal lacks:

(Multiple Choice)

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Question 62

Present value is also referred to as compounding.

(True/False)

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Question 63

What are the six steps in the financial planning process?

(Essay)

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Question 64

Developing and using a budget is part of which component of financial planning?

(Multiple Choice)

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Question 65

The ability to readily convert financial resources into cash without loss of value is referred to as:

(Multiple Choice)

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Question 66

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.Which aspect of financial planning does this deal with?

(Multiple Choice)

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Question 67

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

(Essay)

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Question 68

Changes in personal,social,and economic factors make it necessary to:

(Multiple Choice)

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Question 69

Lenders benefit more than borrowers in times of high inflation.

(True/False)

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Question 70

Opportunity costs may be viewed only in terms of financial resources.

(True/False)

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Question 71

Linda Ashworth is trying to decide whether to keep her money in a savings account or in a mutual fund.What would you tell her to help her analyze her decision?

(Essay)

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Question 72

The main responsibility of The Fed is to:

(Multiple Choice)

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Question 73

When prices are rising at a rate of 2 percent,the cost of products and services would double in ______ years.

(Multiple Choice)

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Question 74

Using the services of financial institutions will be most evident in your effort to:

(Multiple Choice)

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Question 75

If a person deposited $50 a month for 6 years earning 8 percent,this would involve what type of computation?

(Multiple Choice)

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Question 76

More recently,the annual price increase for most goods and services as measured by the consumer price index has been less than ____ percent.

(Multiple Choice)

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Question 77

Increased home building results in:

(Multiple Choice)

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Question 78

A formalized report that summarizes your current financial situation,analyzes your financial needs,and recommends future financial activities is a(n):

(Multiple Choice)

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Question 79

The main goal of personal financial planning is managing your money to:

(Multiple Choice)

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Question 80

Showing 61 - 80 of 116

.Brad Johnson has a goal of "saving $50 a month for vacation." Brad's goal lacks:

Present value is also referred to as compounding.

What are the six steps in the financial planning process?

Developing and using a budget is part of which component of financial planning?

The ability to readily convert financial resources into cash without loss of value is referred to as:

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.Which aspect of financial planning does this deal with?

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

Changes in personal,social,and economic factors make it necessary to:

Lenders benefit more than borrowers in times of high inflation.

Opportunity costs may be viewed only in terms of financial resources.

Linda Ashworth is trying to decide whether to keep her money in a savings account or in a mutual fund.What would you tell her to help her analyze her decision?

The main responsibility of The Fed is to:

When prices are rising at a rate of 2 percent,the cost of products and services would double in ______ years.

Using the services of financial institutions will be most evident in your effort to:

If a person deposited $50 a month for 6 years earning 8 percent,this would involve what type of computation?

More recently,the annual price increase for most goods and services as measured by the consumer price index has been less than ____ percent.

Increased home building results in:

A formalized report that summarizes your current financial situation,analyzes your financial needs,and recommends future financial activities is a(n):

The main goal of personal financial planning is managing your money to:

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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